GREECE Law and Practice Contributed by: Fotodotis Malamas, Bernitsas Law
2. Succession 2.1 Cultural Considerations in Succession Planning Greece has one of the largest numbers of small and medium-sized enterprises (SMEs) in the EU. The majority of these enterprises are family businesses, and the main shareholder is usually also the CEO or chairman of the board, or the main partner taking the most important decisions. Greek cultural norms create hurdles to the transfer of businesses, rendering the entire process fairly complex and difficult. The older generation generally wishes to transfer busi - nesses to the next generation, but is reticent to do so and ill-equipped to prepare for the process. The legal framework does not simplify the transition pro - cess from one generation to the next, with business owners facing impediments including high inheritance and gift tax rates, bureaucracy and a complex legal framework. The Greek State has not provided any tools to entre - preneurs for the successful transition of a family busi - ness, and it appears that large families are more con - cerned with the transition of their businesses to the next generation. The second generation tends to be better prepared for the transition in terms of knowl - edge and experience, and as a result the probability for survival of family businesses is higher in large fami - lies than in small ones. 2.2 International Planning The tendency towards globalisation has also affect - ed Greek businesses and, again, large families have proved to be better equipped for the international challenge compared to SMEs. Their working relation - ships with foreign businesses and the acknowledg - ment that cross-border expansion entails a different legal framework for each country contribute to better preparation for a smooth business transition. How - ever, the complexities of the tax environment and inheritance issues, such as forced heirship, generate concerns for the transition process. 2.3 Forced Heirship Laws One of the institutions of inheritance law that deter - mines how property passes after death is forced heir -
• trusts; • co-operatives; and • companies in bankruptcy or liquidation.
The Incumbent Entities are required, either through their legal representatives, or through specially authorised persons, to proceed with the registration of the data detailed in Article 4 of the Decision with the Central UBO Register through the GSIS e-platform. It is noted that listed companies are exempt from this requirement since they are registered automatically with the Central UBO Register through an interface between the Central Security Securities Depository and the GSIS e-platform. All newly established entities that are required to com - ply with the obligations of Articles 20 and 21 of the AMLL are obliged to submit the relevant information within 60 days following their establishment. The same 60-day deadline also applies to all Incumbent Entities in the case of any future changes to the already regis - tered information with regard to their UBO(s). The information submitted to the Central UBO Reg - ister has to be kept in printed or digital form – suf - ficiently documented and updated – at the registered seat of the Incumbent Entity, for a time period of five years after the initial registration. All TaxisNet users (not only those having a legitimate interest) have the right to access the data kept at the Central UBO Register by paying a special fee amount - ing to between EUR20 and EUR100. Access to the Central UBO Register for the incum - bent legal entities became available on 1 Novem - ber 2022 and for the general public on 31 Decem - ber 2025. Access by the tax authorities, competent control authorities and competent authorities shall remain valid under the terms and conditions set by Law 4557/2018.
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